Third-party logistics refers to the outsourcing of supply chain operations and logistics in order to deliver a company's product to its customer.
The logistics solutions that 3PLs offer includes receiving, storing, packing, and shipping services. Some 3PL companies in Canada also provide other logistics services, referred to as value-added services. You can also get more information about third-party logistics in Canada via https://shiphype.com/3pl.
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3PL service providers have been managing this kind of logistics for years or decades, they have the expertise and leverage to make the process simpler, quicker, and more cost-effective for the seller.
Types of 3PLs
Most 3PLs offer a variety of services, but not all 3PLs offer the same services and functions and some 3PLs specialize in one or two areas. Most 3PLs focus on one of these functional areas:
3PLs focused on transportation services handle inventory shipments between manufacturers and your warehouse or between your company and your buyers.
These consist of freight forwarders who often transport large shipments from one country to another and small parcel shippers, like UPS, FedEx, and USPS.
2. Warehousing, Fulfillment, and Distribution
This is the most common type of 3PL and provides basic fulfillment services such as storage, fulfillment, pick and pack, shipping and returns. Sellers use this type of 3PL to outsource all or most of their fulfillment and warehousing needs.
Additionally, most of these 3PLs manage the seller's transportation, identifying which shipper to use, managing the relationship with the shipper, and optimizing the shipping strategy on behalf of the seller.